When They Do The QE Stomp

Print Friendly

Originally posted May 22, 2013.

The selloff in Treasuries today reminded me of a great song from my childhood.

I just changed the words a little.

Traders on Wall Street get some quick feet
When they do the QE stomp.
Really somethin when the yields start jumpin
When they do the QE stomp.
Whoa oh!

It started in Congress
With a Bernanke show
But he gave a wrong answer
Then the yields did blow.

They started sellin.
Oh, what a sight to see!

The yields are jumpin and the banks are dumpin
When they do the QE stomp.
Really somethin when the yields start jumpin
When they do the QE stomp.

It gets that panic feel.
You know you know it’s real.
You better sell.
You know it well.

If you decide to wait.
Then it will be too late.
Oh my.
Oh why oh why.
Ohhhh whyyy?

Traders on Wall Street get some quick feet
When they do the QE stomp.
Really somethin when the yields start jumpin
When they do the QE stomp.
Whoa oh!

If you don’t sell it now
You’ll get hit with a pow
And your cash will be all gone
All-l-l-l-l goo-o-ne!

The yields are jumpin and the banks are dumpin
When they do the QE stomp.
Really somethin when the yields start jumpin
When they do the QE stomp.

Whoa whoa

Repeat and fade.

Actually, the banks have been dancing out the back door for the last 10 months.

Bank Holdings of Treasuries and Agencies - Click to enlarge

Bank Holdings of Treasuries and Agencies – Click to enlarge

Chart Credit:  Investing Simplified, by Ben S. Bernanke- Wall Street Examiner Professional Edition 5/22/13. I update the chart weekly in the Professional Edition Fed and Treasury Reports.

Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Get the research and analysis you need to understand these critical forces and stay ahead of the herd. Click this link and begin your risk free trial NOW!

Read Profit Margins Are Irrelevant – Stock Prices Measure Liquidity, Not Profit Growth

Economic Charts

Follow my comments on the markets and economy in real time @Lee_Adler on Twitter!

Spread it!Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

Keep track of the insanity of the Fed, Primary Dealers, the US Treasury, other central banks and a whole cast of nefarious characters as they drive markets in the Wall Street Examiner Professional Edition Fed Report and Treasury update. Try the Professional Edition risk free for 30 days!